Hi,
I have a following situation w.r.t ISO which I exercised from my former employer.
I exercised let say 5000 stocks at $1.00 in year Jan 2016
Then this company got acquired by another company and approximate price/share was shown in the documents as $1.96/share.
Now I got 1st disbursement for $8200 and I have been told I will get two more disbursement in year 2019 and 2020. I don't know the exact amounts but getting monthly statements which has some amounts mentioned on it as indemnification Escrow amount.
I did receive 1099-B wherein it shows net proceeds as $8200. How do I report cost basis here correctly considering I will be receiving 1099-B for next two year? I'm not sure how to proportionate number of shares in this year and next two years so that I show profit correctly and don't overpay or underpay my taxes?
Any help will be highly appreciated.
Thanks.